706 Federal Estate Tax Return Preparation 

How to Elect Portability of Decedent's Unused Exclusion Amount?

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The surviving spouse must timely file a 706 Federal Estate Tax Return and elect portability of the decedent's unused exclusion amount (deceased spousal unused exclusion (DSUE) amount). 

 

Are you electing to file a 706 Federal Estate Tax Return for portability? Pursuant to the IRS instructions:

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"Executors filing to elect portability may now file Form 706 on or before the fifth anniversary of the decedent’s death. An executor wishing to elect portability under this extension must state at the top of the Form 706 being filed that the return is “Filed Pursuant to Rev. Proc. 2022-32 to Elect Portability under section 2010(c)(5)(A).” For more information on this extension, see Rev. Proc. 2022-32."

 

You have up to 5 years to file the estate tax return for portability. The date of death of your loved one is the start date. If your loved one passed away on 1 Jan 2025, it is best to file no later than 31 Dec 2029. Ensure you file the tax return via overnight service and retain confirmation. If your estate tax return is rejected for any reason, you may need to provide proof you filed timely. Keep the date stamped envelope and correspondence from the IRS too.

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Our 706 Federal Estate Tax Return paralegal services solutions include obtaining appraisals and valuations of assets, preparation of all schedules, with specific emphasis for maximizing  tax deductions on the following estate tax return schedules:

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• Schedule J: Funeral expenses and expenses incurred in administering property subject to claims

• Schedule K: Debts of the decedent, and mortgages and liens. 

• Schedule L: Net losses from theft, fire, storms if not reimbursed by insurance, during administration and expenses incurred in administering property not subject to claims

• Schedule M: Allowable marital deductions which are bequests to the surviving spouse

• Schedule O: Qualified charitable, public, and similar gifts and bequests

• Schedule U: Qualified conservation easement exclusion of land owned 3 years prior to death

• Schedule R (estate): Calculate Generation Skipping Tax (GST) and preparation of GST exempt and GST non-exempt trust documents for Schedule R

• Schedule R-1 (trustee or other fiduciary): Calculate GST tax owed on certain direct skips from a trust of a person two or more generations below the transferor​